As a result of an investigation of alleged violations of the codes of professional conduct of the AICPA and the Georgia Society of CPAs, Mr. Sledge entered into a settlement agreement under the Joint Ethics Enforcement Program, effective March 9, 2021.
A complaint has come to the attention of the Ethics Charging Authority (ECA - AICPA Professional Ethics Executive Committee and the Georgia Society of CPAs Professional Ethics Committee) alleging a potential disciplinary matter with respect to Mr. Sledge’s withholding funds from the 2009, 2010, and 2011 tax refunds that he reviewed and filing his client’s individual 2011 tax return without receiving authorization.
The ECA has reviewed the complaint, and Mr. Sledge’s responses to the ECA’s inquiries, and other relevant documents Mr. Sledge submitted to support his response.
Based on this information, the ECA charged Mr. Sledge with the following violations of the AICPA and Georgia Society of CPAs codes of professional conduct:
Violations
Acts Discreditable Rule (1.400.001 formerly Rule 501)
Mr. Sledge did not observe the requirements of § 10.31, “Negotiation of Taxpayer Checks” of the 2005 Circular 230 which states “A practitioner who prepares tax returns may not endorse or otherwise negotiate any check issued to a client by the government in respect of a Federal tax liability.” Mr. Sledge had his client’s tax refunds deposited into an account held by his firm and then provided the refund amount less any fees being charged.
General Standards Rule b. Due Professional Care (1.300.001 formerly Rule 201)
Mr. Sledge filed the client’s individual 2011 tax return without receiving authorization.
Agreement
In consideration of the ECA forgoing further investigation of Mr. Sledge’s conduct as described above, and in consideration of the ECA forgoing any further proceedings in the matter, Mr. Sledge agreed as follows:
To waive his rights to further investigation of this matter in accordance with the Joint Ethics Enforcement Program (JEEP) Manual of Procedures
To waive his rights to a hearing under AICPA bylaws section 7.4 and Article XI section 4 of the Georgia Society of CPAs
To neither admit nor deny the above specified charges
To his expulsion by the AICPA and the Georgia Society of CPAs. His expulsion from the AICPA includes the loss of his AICPA credentials and certificates.
That the ECA shall publish his name, the charges, and the terms of this settlement agreement